📝Now See EUR/USD Reaching 1.12 Over Next 12 Months :Rabobank

Aside from this week’s fundamental shifts in Europe, the market has also been re-evaluating the

economic outlook for the US. Trump’s tendency to pull back on tariff threats suggests that the

market may have over-estimated the inflationary impact of these policies. At the same time, in

recent weeks the market has been contemplating the possibility that US growth is finally slowing.

Growth fears have been highlighted by various US economic releases such as the latest rounds of retail sales and PMI data and more recently by the drop in the new order index in the February ISM print, though

the February US payrolls report failed to bring much new direction.

Any signs that the Fed is concerned about price pressures should therefore provide the USD with

support. This suggesting scope for a pullback towards 1.05 this spring. We are forecasting EUR/USD at 1.12 on a 12-month view. - Rabobank